Govern Your Spending With Our 5 Budgeting Tips (VIDEO)

That’s right: The best way to save your money is to keep your cash out of spending reach by diverting it to a separate savings account — one different from the checking account you use for everyday expenditures. (We can help you figure out the best place to park your short-term cash, too.)

Step 5: Stop mindless overspending

Life is full of temptations. (According to the rundown of my annual credit card spending, “merchandise/retail” is my temptress.) You can stay strong, grasshopper, with nothing more than a few envelopes and a ball-point pen.

The “envelope” method of budgeting will instantly structure your everyday spending. It’s simple:

Come up with a reasonable weekly amount you’ll allow yourself to spend in your biggest categories. (Those are typically “food” (or, depending on your lifestyle, get more specific such as “lunch,” “family dinners out”), “entertainment” (e.g. happy hours, movies, tabloids to pass the time), “transportation” (gas, parking, taxis, public transportation), “apparel/services” (dry cleaning, bangs trim, cute shoes.)

But don’t tax yourself too much: Remember that in dollars-and-cents (and sanity) terms, sweating the big stuff before all else will save you the most coin. Plus, it will leave you plenty of time to procrastinate about stuff besides your finances.

Are We Entering A Recession Or A Depression?

Good luck and tell us how it turns out.

Govern Your Spending With Our 5 Budgeting Tips (VIDEO)  was originally published on elev8.com

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